MONTREAL, Jan. 14, 2022 (GLOBE NEWSWIRE) — Inter Berner Dubois has today confirmed that stocks in the U.S. have risen as investors eye the latest inflation report, revealing a pace that has not been witnessed in decades. This comes a day after Federal Reserve Chair Jerome Powell reaffirmed that the central bank would intervene when necessary to keep rising prices in order.
According to statistics gathered by the department’s Bureau of Labor Statistics, prices increased by a 7% year-over-year rate at the end of 2021, the fastest rise in 40 years. This met the company’s consensus predictions and surged from November’s already impressive 6.8% gain.
Consumer prices increased 0.5 percent on a month-over-month basis, marginally higher than the 0.4 percent increase predicted, marking the eighteenth consecutive month of price increases.
Key financial experts from Inter Berner Dubois noted that the market fluctuations on Wednesday followed a rebound rally on Tuesday, with markets finding relief, at least momentarily, following Federal Reserve Chair Jerome Powell’s assurance that the central bank will intervene as needed to alleviate increasing prices. In Powell’s renomination hearing before the Senate Banking Committee, the central bank chairman maintained that the Fed would utilize its policy tools to bring down inflation.
During the hearing, Powell said, “If we see inflation persisting at high levels, longer than expected, if we have to raise interest rates more over time, then we will.”
The central bank had previously announced that it planned to raise interest rates three times this year to bring them up from near-zero levels. However, given the current inflation landscape, finance executives at Inter Berner Dubois expect the Fed to raise rates four times.
“I think the greatest concern on most of our investors’ minds would be a ‘policy error’ and that the Fed may be overly aggressive,” said Mr. Darryl Hamilton, Chairman of Inter Berner Dubois. “Mr. Powell essentially came out today and said this is going to be a lengthy process, and regarding how long this might take, I believe this is what is keeping our investors calm.”
Though prospects of increased borrowing costs and tighter financial conditions have sparked volatility in U.S. equities and tech stocks in recent sessions, the tech-heavy Nasdaq Composite outperformed substantially in Tuesday’s session.
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Stephane Charbonneau | Chief of Research & Analysis
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